The Board of Directors of Capital Hotels Plc as notified the Nigerian Exchange of the proposed purchase of 51% of Capital Hotels by 11Plc.
In a statement signed by the Company Secretary Mr. Alex Ugwuanyi, the Company stated thus:
At the Emergency Meeting of the Board of Directors of Capital Hotels Plc held on 14th June 2021 to consider the offer by 11 Plc to purchase 51% stake in Capital Hotels Plc, the Board passed the following Resolutions:
The Board agreed to partner with 11 Plc to offer the right competition in the Abuja hospitality market, and resolved to sell 51% stake in Capital Hotels Plc to 11 Plc at the price of N7.00 per share subject to Hans Gremlin Nig Ltd (the Core shareholder) being given the opportunity to exit 50% of its stake in Capital Hotels Plc at the same price, and on such other terms and conditions as the Directors may deem fit subject to obtaining the approval of the Regulatory Authorities.
The Board also agreed that in order to balance the interest of Capital Hotels Plc (the Company), Hans Gremlin Nig Ltd (the Core shareholder) and 11 Plc (the Investor), the transaction could be structured with offer for sale and offer for subscription subject to obtaining approval required from the Regulatory Authorities.
The Board further agreed that if the new investor accepts the conditions herein stated, an Extraordinary General Meeting would be convened to get the approval of the Shareholders for this transaction.